BILL NUMBER: AB 695	CHAPTERED  10/10/99

	CHAPTER   858
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	AMENDED IN SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JUNE 28, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   MAY 12, 1999
	AMENDED IN ASSEMBLY   APRIL 8, 1999

INTRODUCED BY   Assembly Member Mazzoni

                        FEBRUARY 23, 1999

   An act to amend Sections 15340, 17009.5, 17070.15, 17070.75,
17071.10, 17071.25, 17071.75, 17072.10, 17072.20, 17074.10, 17076.10,
and 100420 of, to add Section 17072.17 to, and to repeal Section
15341 of, the Education Code, to amend Section 1003 of the Elections
Code, and to amend Sections 65995.5 and 65995.6 of the Government
Code, relating to school facilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 695, Mazzoni.  School facilities:  construction and
modernization.
   Existing law, the Leroy F. Greene School Facilities Act of 1998,
(the Greene Act of 1998) establishes a program in which the State
Allocation Board is required to provide state per-pupil funding,
including hardship funding, for new school facilities construction
and school facilities modernization to applicant school districts, as
defined, and requires applicants to provide local matching funds.
   This bill would authorize the board to adopt or amend regulations
on or after January 1, 2000, to adjust the assumed capacity for each
teaching station used for nonsevere or severe special day class
purposes after considering the recommendations of the Legislative
Analyst required pursuant to existing law, which would be implemented
upon approval of the Director of Finance.
   This bill would authorize the board to adopt, on or after January
1, 2001, regulations establishing assumed capacity standards, after
consideration of recommendations developed by the Director of
Finance, for continuation high school, community day school, county
community school, and county community day school, teaching stations.
  This bill would require adjustments pursuant to these regulations,
or any other adjustments to the existing capacity related to changes
in the assumed capacity of these teaching stations to be approved by
the Director of Finance prior to implementation.
   Existing law permits funding under the Greene Act of 1998 for
projects approved pursuant to the state school facilities funding
provisions operative prior to November 4, 1998, if certain conditions
are met.
   This bill would require the board to adopt regulations to offset
funding provided under the previous school facilities funding
provisions from grants under the Greene Act of 1998.
   The Greene Act of 1998 requires school districts to make all
necessary repairs, renewals, and replacements, to ensure that a
project is at all times kept in good repair, working order, and
condition, and requires that all costs incurred for this purpose be
borne by the school district.  Existing law requires the applicant
school district to establish a restricted account for providing
moneys for ongoing and major repair of the facilities, and to agree
to annually deposit at least 3% of the school district's general fund
budget for a period of 20 years.
   This bill would require the 3% maintenance requirement to be
calculated, for the purposes of a county office of education, based
upon the county office of education general fund less any restricted
accounts.
   Existing law relating to the formation of school facilities
improvement district, authorizes the governing board of the school
district to provide for and call a special bond election within the
school facilities improvement district to submit to the voters a
proposition on whether to incur debt and issue bonds, and prohibits
elections from being held within 45 days before or after a statewide
election, unless conducted at the statewide election.
   This bill would repeal provisions prohibiting an election within
the 45-day period before or after a statewide election, and would
permit the election to be called for any date, except as specified.
   Existing law provides specific dates on which elections are
required to be held, but exempts certain elections from those
requirements, including but not limited to, elections relating to
school bonds.
   This bill would specifically exempt from those provisions
elections relating to school facility improvement districts.
   Existing law requires the calculation of existing pupil capacity
to be made on a one-time basis as a baseline for eligibility
determinations, and requires each participating school district to
submit to the board a one-time report of existing school building
capacity.
   This bill would, notwithstanding those provisions, require a
school district newly formed reorganized, or affected by
reorganization pursuant to an election that occurred on or after
November 4, 1998, to calculate its existing school building capacity
pursuant to regulations adopted by the State Allocation Board.
   Existing law sets forth the manner in which the board shall
determine each applicant school district's maximum total new
construction per-pupil grant eligibility.
   This bill would, until January 1, 2003, authorize the board to
approve a new construction supplemental apportionment not to exceed
$7,500, and a modernization supplemental apportionment not to exceed
$2,500, for a school having an enrollment of 2,500 or less for the
prior fiscal year.  The bill would require the board to adjust these
amounts in 2000 and every 2 years thereafter.
   Existing law, the Class Size Reduction Kindergarten-University
Public Education Facilities Bond Act of 1998, (the School Bond Act of
1998) authorizes the issuance and sale of bonds and the use of the
revenues, in part, for the purposes of the Greene Act of 1998.
   The School Bond Act of 1998 authorizes not less than $700,000,000
to be allocated, commencing with the 1998-99 fiscal year, to assist
school districts with site acquisition and facilities-related costs
of kindergarten and grades 1 to 3, inclusive, that are participating
in a class size reduction program pursuant to prescribed provisions
of law.
   Existing law requires funds not expended pursuant to these
provisions to be allocated to school districts that request
prescribed funding for teaching stations that were displaced.
   This bill would, instead, authorize that the unexpended funds be
allocated in this manner.
   Existing law authorizes the governing board of a school district
to impose an amount calculated pursuant to a prescribed formula in
lieu of amounts that may be imposed upon residential construction
pursuant to prescribed provisions of law, and with certain
exceptions, requires that these amounts be expended solely on school
facilities identified as being attributable to projected growth from
the construction of new residential units.  Existing law limits site
development costs for these purposes to 2 times the amount funded by
the State Allocation Board.
   This bill would recast those provisions and would make this
limitation applicable to expenditure of fees assessed pursuant to
provisions permitting increased fees when state funds for new school
construction are not available.  The bill would limit site
development costs for these purposes to the estimated amount that
would be funded by the State Allocation Board pursuant to its
regulations.
   Existing law requires the governing board of a school district to
conduct a facility needs analysis for this purpose, and permits its
revision at any time.
   This bill would require recalculation of the school building
capacity for those purposes as part of any revision of the needs
analysis.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 15340 of the Education Code is amended to read:

   15340.  (a) After adopting the resolution ordering the formation
of the school facilities improvement district, the governing board
may provide for and call a special bond election within the school
facilities improvement district to, or may at the next statewide
election, submit to the voters of the school facilities improvement
district a proposition of whether or not an indebtedness of the
district shall be incurred and bonds issued therefor in an amount not
exceeding the estimate stated in the resolution ordering the school
facilities improvement district formed.  Notwithstanding any other
provision of law, any special election called pursuant to this
section may be called for any date except as set forth in Section
1100 of the Elections Code.
   (b) The indebtedness and the bonds shall be payable from taxes to
be levied and collected upon lands located within the school
facilities improvement district.
  SEC. 2.  Section 15341 of the Education Code is repealed.
  SEC. 3.  Section 17009.5 of the Education Code is amended to read:

   17009.5.  (a) On and after November 4, 1998, the board shall only
approve and fund school facilities construction projects pursuant to
Chapter 12.5 (commencing with Section 17070.10).
   (b) A school district with a first priority project that has
received a construction approval by the Department of General
Services, Division of the State Architect, or a joint-use project
approval by the board, prior to November 4, 1998, for growth or
modernization pursuant to this chapter shall receive funding pursuant
to this chapter for all unfunded approved project costs as it would
have received under this chapter, and the increased capacity assigned
to the project shall be included in calculating the district's
capacity pursuant to Chapter 12.5 (commencing with Section 17070.10).
  Funds received for projects described in this subdivision shall
constitute the state's final and full contribution to these projects.
  The board shall not consider additional project funding except when
otherwise authorized under Chapter 12.5 (commencing with Section
17070.10).
   (c) A school district with a second priority project that has
received a construction approval by the Department of General
Services, Division of the State Architect prior to November 4, 1998,
for growth or modernization pursuant to this chapter shall elect to
do either of the following:
   (1) Withdraw the application under this chapter, submit an initial
report and application pursuant to Chapter 12.5 (commencing with
Section 17070.10), and receive per pupil allocations as set forth in
Chapter 12.5 (commencing with Section 17070.10).  If the district
withdraws the application, any funds previously allocated under this
chapter for the project shall be offset from the first grant to the
district under Chapter 12.5 (commencing with Section 17070.10).
   (2) Convert the second priority project approved under this
chapter to a first priority status and receive funds in accordance
with this chapter.
   (d) Notwithstanding priorities established pursuant to Chapter
12.5 (commencing with Section 17070.10), projects authorized for
funding as set forth in this section shall be funded by the board
pursuant to this chapter prior to funding other projects pursuant to
Chapter 12.5 (commencing with Section 17070.10).
   (e) For purposes of funding priority for modernization grants
under Chapter 12.5 (commencing with Section 17070.10), a district
that applies under subdivision (b) or paragraph (1) of subdivision
(c) shall retain its original project approval date.
   (f) Notwithstanding Section 17017.1, West Contra Costa Unified
School District shall be eligible for state facilities funds
beginning November 4, 1998.
   (g) The State Allocation Board shall adopt regulations to ensure
that an appropriate offset is made from funds approved pursuant to
this chapter, for funds awarded to school districts pursuant to
Chapter 12 (commencing with Section 17000) prior to November 4, 1998.

  SEC. 4.  Section 17070.15 of the Education Code is amended to read:

   17070.15.  The following terms, wherever used or referred to in
this chapter, shall have the following meanings, respectively, unless
a different meaning appears from the context:
   (a) "Apportionment" means a reservation of funds for the purpose
of eligible new construction, modernization, or hardship approved by
the board for an applicant school district.
   (b) "Attendance area" means the geographical area serving an
existing or proposed high school and those junior high schools and
elementary schools included therein.
   (c) "Board" means the State Allocation Board as established by
Section 15490 of the Government Code.
   (d) "Department" means the Department of General Services.
   (e) "Committee" means the State School Building Finance Committee
established pursuant to Section 15909.
   (f) "Modernization" means any modification of a permanent
structure that is at least 25 years old, or in the case of a portable
classroom, that is at least 20 years old, that will enhance the
ability of the structure to achieve educational purposes.
   (g) "Property" includes all property, real, personal or mixed,
tangible or intangible, or any interest therein necessary or
desirable for carrying out the purposes of this chapter.
   (h) "School district" means a school district or a county office
of education.  For purposes of determining eligibility under this
chapter, "school district" may also mean a high school attendance
area.
   (i) "Fund" means the 1998 State School Facilities Fund established
pursuant to Section 17070.40.
   (j) "County fund" means a county school facilities fund
established pursuant to Section 17070.43.
   (k) "Portable classroom" means a classroom building of one or more
stories that is designed and constructed to be relocatable and
transportable over public streets, and with respect to a single story
portable classroom, is designed and constructed for relocation
without the separation of the roof or floor from the building and
when measured at the most exterior walls, has a floor area not in
excess of 2,000 square feet.
   (l) "School building capacity" means the capacity of a school
building to house pupils.
  SEC. 5.  Section 17070.75 of the Education Code is amended to read:

   17070.75.  (a) The board shall require the school district to make
all necessary repairs, renewals, and replacements to ensure that a
project is at all times kept in good repair, working order, and
condition.  All costs incurred for this purpose shall be borne by the
school district.
   (b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following prior to the approval of a project:
   (1) Establish a restricted account within the school district's
general fund for the exclusive purpose of providing moneys for
ongoing and major maintenance of school buildings, according the
highest priority to funding for the purposes set forth in subdivision
(a).
   (2) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 3
percent of the applicant school district's general fund budget for
that fiscal year.  For the 1998-99 fiscal year and the 1999-2000
fiscal year, a school district may phase in this requirement by
agreeing to certify the deposit of no less than 2 percent for the
1998-99 fiscal year and no less than 21/2 percent for the 1999-2000
fiscal year.  Annual deposits to the fund established pursuant to
paragraph (1) in excess of 21/2 percent of the district general fund
budget may count towards the district's matching funds requirement
necessary to receive apportionments from the State School Deferred
Maintenance Fund pursuant to Section 39619 to the extent that funds
are used for purposes that qualify for funding under that section.
In addition, any district contribution to this fund may be provided
in lieu of meeting the ongoing maintenance requirements pursuant to
Section 17014 to the extent the funds are used for purposes
established in that section.  This paragraph is applicable only to
the following school districts:
   (A) High school districts with an average daily attendance greater
than 300 pupils.
   (B) Elementary school districts with an average daily attendance
greater than 900 pupils.
   (C) Unified school districts with an average daily attendance
greater than 1,200 pupils.
   (3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2).  The plan may provide that
the district need not expend all of its annual allocation for ongoing
and major maintenance in the year in which it is deposited if the
cost of major maintenance requires that the allocation be carried
over into another fiscal year.  However, any state funds carried over
into a subsequent year shall not be counted toward the annual
minimum contribution by the district.  A plan developed in compliance
with this section shall be deemed to meet the requirements of
Section 17585.
   (c) A district to which paragraph (2) of subdivision (b) does not
apply shall certify to the board that it can reasonably maintain its
facilities with a lesser level of maintenance.
   (d) For the purposes of calculating a county office of education
requirement pursuant to this section, the 3 percent maintenance
requirement shall be calculated based upon the county office of
education general fund less any restricted accounts.
  SEC. 6.  Section 17071.10 of the Education Code is amended to read:

   17071.10.  (a) The calculation determined by this article shall be
made on a one-time basis, and will be used as the baseline for
eligibility determinations pursuant to this chapter.
   (b) Each school district that elects to participate in the new
construction program pursuant to this chapter shall submit to the
board a one-time report of existing school building capacity.
   (c) Notwithstanding subdivisions (a) and (b), a school district
newly formed , reorganized, or affected by reorganization, pursuant
to an election that occurred on or after November 4, 1998, shall
calculate or recalculate its existing school building capacity
pursuant to regulations adopted by the State Allocation Board.
  SEC. 7.  Section 17071.25 of the Education Code is amended to read:

   17071.25.  (a) The existing school building capacity in the
applicant school district or, where appropriate, in the attendance
area, at the time of initial application shall be calculated pursuant
to the following formula:
   (1) Identify by grade level all permanent teaching stations
existing in the school district or, where appropriate, the attendance
area.  For the purposes of this section, "teaching station" means
any space that was constructed or reconstructed to serve as an area
in which to provide pupil instruction, but shall not include portable
buildings, except as provided in Section 17071.30.
   (2) (A) The assumed capacity of each calculated teaching station
pursuant to paragraph (1) shall be 25 pupils for each teaching
station used for kindergarten or for grades 1 to 6, inclusive, and 27
pupils for each teaching station used for grades 7 to 12, inclusive.

   (B) On or after January 1, 2000, the board may adopt or amend
regulations adjusting the assumed capacity set forth in this
subparagraph as appropriate for each teaching station used for
nonsevere or severe special day class purposes after considering the
recommendations of the Legislative Analyst pursuant to Section
17072.15.  These special day class capacity adjustments and any
adjustment of existing school capacity related to changes in the
assumed capacity of special day class teaching stations shall be
approved by the Director of Finance prior to implementation.
   (C) On or after January 1, 2001, the board may adopt regulations
establishing assumed capacity standards after consideration of the
recommendations developed by the Director of General Services for
continuation high school, community day school, county community
school, and county community day school, teaching stations pursuant
to Section 17072.17.  Teaching station assumed capacity adjustments
pursuant to these regulations and any other adjustments of existing
school capacity related to changes in the assumed capacity of
continuation high school, community day school, county community
school, and county community day school, teaching stations shall be
approved by the Director of Finance prior to implementation.
   (3) Multiply the assumed capacity of each teaching station as
specified in paragraph (2) by the number of teaching stations
calculated under paragraph (1).
   (4) The result of this computation shall be the number of pupils
housed by grade level in the existing school building capacity of the
applicant school district.
   (b) The existing school building capacity of the applicant school
district calculated under this section shall not include, in any
school operated on a year-round schedule, any teaching station that
has been in continuous use during the preceding five-year period
primarily for the operation of a preschool program or programs.
  SEC. 8.  Section 17071.75 of the Education Code is amended to read:

   17071.75.  After a one-time initial report of existing school
building capacity has been completed, a school district's ongoing
eligibility for new construction funding shall be determined by
making all of the following calculations:
   (a) Each school district that applies to receive funding for new
construction shall calculate enrollment projections for the fifth
year beyond the fiscal year in which the application is made.
Projected enrollment shall be determined by utilizing the cohort
survival enrollment projection system, as defined and approved by the
board.  The board may supplement the cohort survival enrollment
projection by the number of unhoused pupils that are anticipated as a
result of dwelling units proposed pursuant to approved and valid
tentative subdivision maps.
   (b) Add the number of pupils that may be adequately housed in the
existing school building capacity of the applicant district as
determined pursuant to Article 2 (commencing with Section 17071.10)
to the number of pupils for which facilities were provided from any
state or local funding source after the existing school building
capacity was determined pursuant to Article 2 (commencing with
Section 17071.10).  For this purpose, the total number of pupils for
which facilities were provided shall be determined using the pupil
loading formula set forth in Section 17071.25.
   (c) Subtract the number of pupils pursuant to subdivision (b) from
the number of pupils determined pursuant to subdivision (a).
   (d) The calculations required to establish eligibility under this
article shall result in a distinction between the number of existing
unhoused pupils and the number of projected unhoused pupils.
   (e) Apply the increase or decrease resulting from the difference
between the most recent report made pursuant to Section 42268, and
the report used in determining the school district's baseline
capacity pursuant to subdivision (a) of Section 17071.25.
  SEC. 9.  Section 17072.10 of the Education Code is amended to read:

   17072.10.  (a) The board shall determine the applicant's maximum
total new construction grant eligibility by multiplying the number of
unhoused pupils calculated pursuant to Article 3 (commencing with
Section 17071.75) in each school district with an approved
application for new construction, by the per-unhoused-pupil grant as
follows:
   (1) Five thousand two hundred dollars ($5,200) for elementary
school pupils.
   (2) Five thousand five hundred dollars ($5,500) for middle school
pupils.
   (3) Seven thousand two hundred dollars ($7,200) for high school
pupils.
   (b) The board shall annually adjust the per-unhoused-pupil
apportionment to reflect construction cost changes, as set forth in
the statewide cost index for class B construction as determined by
the board.
   (c) The board may adopt regulations to be effective until July 1,
2000, that adjust the amounts identified in this section for
qualifying individuals with exceptional needs, as defined in Section
56026.  The regulations shall be amended after July 1, 2000, in
consideration of the recommendations provided pursuant to Section
17072.15.
   (d) The board may establish a single supplemental
per-unhoused-pupil grant in addition to the amounts specified in
subdivision (a) based on the statewide average marginal difference in
costs in instances where a project requires multilevel school
facilities due to limited acreage.  The district's application shall
demonstrate that a practical alternative site is not available.
   (e) For a school district having an enrollment of 2,500 or less
for the prior fiscal year, the board may approve a supplemental
apportionment of up to seven thousand five hundred dollars ($7,500)
for any new construction project assistance.  The amount of the
supplemental apportionment authorized pursuant to this subdivision
shall be adjusted in 2001 and every year thereafter by an amount
equal to the percentage adjustment for class B construction.  This
subdivision shall be operative only until January 1, 2003.
  SEC. 10.  Section 17072.17 is added to the Education Code, to read:

   17072.17.  In conjunction with the State Department of Education,
the Department of Finance, and the Legislative Analyst, the
Department of General Services shall review the method of funding the
construction and modernization of school facilities for continuation
high school, community day school, county community school, and
county community day school, teaching stations pursuant to Sections
17072.10 and 17074.10.  Pursuant to this review, the Director of
General Services shall, by September 1, 2000, recommend modifications
to this method that he or she deems to be advisable.
  SEC. 11.  Section 17072.20 of the Education Code is amended to
read:
   17072.20.  (a) An applicant school district that has been
determined by the board to meet the eligibility requirements for new
construction funding set forth in Article 2 (commencing with Section
17071.10) or Article 3 (commencing with Section 17071.75) may submit
at any time a request to the board for a project apportionment for
all or a portion of the funding for which the school district is
eligible.
   (b) The application shall include, but shall not be limited to,
the school district's determination of the amount of state funding
that the district is otherwise eligible for relating to site
acquisition, site development, new construction, and hardship funding
provided pursuant to Article 8 (commencing with Section 17075.10),
if any.  The amount shall be reduced by the amount of the alternative
fee collected pursuant to subdivision (a) of Section 65995.7 of the
Government Code if a reimbursement election or agreement pursuant to
Section 65995.7 of the Government Code is not in effect.
   (c) The board shall verify and adjust, as necessary, and approve
the district's application.
   (d) Unless otherwise requested by an applicant school district, or
unless the school district's eligibility is reduced because of an
increase in the existing school building capacity as calculated
pursuant to subdivision (b) of Section 17071.75, the eligibility for
funding determined pursuant to this section shall be effective for a
period of three years for school districts having an enrollment of
2,500 or less for the prior fiscal year.
  SEC. 12.  Section 17074.10 of the Education Code is amended to
read:
   17074.10.  (a) The board shall determine the total funding
eligibility of a school district for modernization funding by
multiplying the following amounts by each pupil of that grade level
housed in permanent school buildings that are at least 25 years old
or portable classrooms that are at least 20 years old, and that have
not been previously modernized with state funding:
   (1) Two thousand two hundred forty-six dollars ($2,246) for each
elementary pupil.
   (2) Two thousand three hundred seventy-six dollars ($2,376) for
each middle school pupil.
   (3) Three thousand one hundred ten dollars ($3,110) for each high
school pupil.
   (b) The board shall annually adjust the factors set forth in
subdivision (a) according to the adjustment for inflation set forth
in the statewide cost index for class B construction, as determined
by the board.
   (c) The board may adopt regulations to be effective until July 1,
2000, that adjust the amounts identified in this section for
qualifying individuals with exceptional needs, as defined in Section
56026.  The regulations shall be amended after July 1, 2000, in
consideration of the recommendations provided pursuant to Section
17072.15.
   (d) It is the intent of the Legislature that the amounts provided
pursuant to this article for school modernization do not include
funding for administrative and overhead costs.
   (e) For a school district having an enrollment of 2,500 or less
for the prior fiscal year, the board may approve a supplemental
apportionment of up to two thousand five hundred dollars ($2,500) for
any modernization project assistance.  The amount of the
supplemental apportionment shall be adjusted in 2001 and every year
thereafter by an amount equal to the percentage adjustment for class
B construction.  This subdivision shall be operative only until
January 1, 2003.
  SEC. 13.  Section 17076.10 of the Education Code is amended to
read:
   17076.10.  (a) A school district that has received any funds
pursuant to this chapter shall submit a summary report of expenditure
of state funds and of district matching funds annually until all
state funds and district matching funds are expended, and shall then
submit a final report to the board.  The board may require an audit
of these reports or other district records to ensure that all funds
received pursuant to this chapter are expended in accordance with
program requirements.
   (b) If the board finds that a participating school district has
made no substantial progress towards increasing its pupil capacity or
renovating its facilities within 18 months of the receipt of any
funding pursuant to this chapter, the board shall rescind the
apportionment in an amount equal to the unexpended funds.
   (c) If the board, after the review of expenditures or audit has
been conducted pursuant to subdivision (a), determines that a school
district failed to expend funds in accordance with this chapter, the
department shall notify the school district of the amount that must
be repaid to the 1998 State School Facilities Fund within 60 days.
If the school district fails to make the required payment within 60
days, the department shall notify the Controller and the school
district in writing, and the Controller shall deduct an amount equal
to the amount received by the school district under this subdivision,
from the school district's next principal apportionment or
apportionments of state funds to the school district, other than
basic aid apportionments required by Section 6 of Article IX of the
California Constitution.  Any amounts obtained by the Controller
shall be deposited into the 1998 State School Facilities Fund.
   (d) If a school district has received an apportionment, but has
not met the criteria to have funds released pursuant to Section
17072.32 or 17074.15 within a period established by the board, but
not to exceed 18 months, the board shall rescind the apportionment
and deny the district's application.
  SEC. 14.  Section 100420 of the Education Code is amended to read:

   100420.  (a) Of the proceeds from the sale of bonds, issued and
sold pursuant to this chapter, as specified in subdivision (a) of
Section 100410, not more than three billion three hundred fifty
million dollars ($3,350,000,000) shall be allocated beginning in the
1998-99 fiscal year in accordance with the following schedule:
   (1) Not less than one billion three hundred fifty million dollars
($1,350,000,000) for project funding related to the growth in
enrollment of applicant school districts under Chapter 12 and Chapter
12.5 that have incurred or will incur enrollment increases.
   (2) Not less than eight hundred million dollars ($800,000,000) for
the reconstruction or modernization of facilities pursuant to
Chapter 12 and Chapter 12.5.
   (3) Not more than five hundred million dollars ($500,000,000)
shall be deposited in the Public School Critical Hardship Account,
which is hereby established in the 1998 State School Facilities Fund
and shall be allocated by the State Allocation Board to fund critical
hardships as defined in Chapter 12.5.  These funds may be expended
for the acquisition of portable classrooms for use in accordance with
Chapter 14 (commencing with Section 17085) of Part 10.
   (4) (A) Not more than seven hundred million dollars ($700,000,000)
may be allocated to assist school districts with site acquisition
and facilities-related costs of kindergarten and grades 1 to 3,
inclusive, that are in the Class Size Reduction Program contained in
Chapter 6.10 (commencing with Section 52120) of Part 28 and Chapter
19 (commencing with Section 17200) of Part 10, and to assist
districts with the restoration of facilities that previously
accommodated other programs and were displaced as a result of the
implementation of class size reduction.  On and after July 1, 2000,
if applications for the total funds available under this paragraph
have not been filed with the State Allocation Board, the funds for
which applications have not been received may be allocated by the
board to other high priority needs as the board determines.  On and
after July 1, 2003, any funds not allocated are available for other
high priority needs.
   (B) The funds allocated in subparagraph (A) shall be allocated to
the State Department of Education to provide class size reduction
facilities grants necessary to implement the K-3 Class Size Reduction
Program established pursuant to Chapter 6.10 (commencing with
Section 52120) of Part 28 and Chapter 19 (commencing with Section
17200) of Part 10.  The department shall certify to the State
Allocation Board the amount of funds needed for this purpose.  The
board shall transfer the amount of funds needed to the department.
From these funds, the department shall award eligible
                               districts forty thousand dollars
($40,000) for each new option one class established for class size
reduction for which the district had not previously received funding
under class size reduction facilities programs.
   (C) The remaining funds provided pursuant to subparagraph (A)
shall be to provide funding for schoolsites that were eligible to
receive a class size reduction land-locked waiver pursuant to Section
52122.6.  The funds may be provided to districts to provide 50
percent of the cost of funding a facilities mitigation plan developed
for the impacted site pursuant to Section 52122.7.
   (D) Any funds not expended pursuant to subparagraphs (A), (B), or
(C) may be allocated to districts that request funding of forty
thousand dollars ($40,000) for each teaching station that (1) was
displaced as a result of the implementation of class size reduction
and (2) received less than forty thousand dollars ($40,000) per
teaching station in 1996-97 pursuant to Chapter 19 (commencing with
Section 17200) of Part 10.  Programs for which teaching stations may
be restored may include child care, extended day care, school
libraries, computer labs, and special education classrooms.
   (b) Of the proceeds from the sale of bonds issued and sold
pursuant to this chapter, as specified in subdivision (b) of Section
100410, not more than three billion three hundred fifty million
dollars ($3,350,000,000) shall be allocated beginning in the 2000-01
fiscal year in accordance with the following schedule:
   (1) Not less than one billion five hundred fifty million dollars
($1,550,000,000) for project funding related to the growth in
enrollment of applicant school districts under Chapter 12.5 that have
incurred or will incur enrollment increases.
   (2) Not less than one billion three hundred million dollars
($1,300,000,000) for the reconstruction or modernization of
facilities pursuant to Chapter 12.5.
   (3) Not more than five hundred million dollars ($500,000,000)
shall be deposited in the Public School Critical Hardship Account in
the 1998 State School Facilities Fund and shall be allocated by the
State Allocation Board to fund critical hardships as defined in
Chapter 12.5.  These funds may be expended for the acquisition of
portable classrooms for use in accordance with Chapter 14 (commencing
with Section 17085) of Part 10.
   (c) Districts may use funds allocated pursuant to paragraph (2) of
subdivision (a) and paragraph (2) of subdivision (b) for one or more
of the following purposes in accordance with Chapter 12.5:
   (1) The purchase and installation of air-conditioning equipment
and insulation materials, and related costs.
   (2) Construction projects or the purchase of furniture or
equipment designed to increase school security or playground safety.

   (3) The identification, assessment, or abatement in school
facilities of hazardous asbestos.
   (4) Project funding for high priority roof replacement projects.
   (5) Any other renovation or modernization of facilities pursuant
to Chapter 12.5.
   (d) Funds allocated pursuant to paragraph (1) of subdivision (a)
and paragraph (1) of subdivision (b) may be utilized to provide new
construction grants, without regard to funding priorities, for
applicant county boards of education under Chapter 12.5 that are
eligible for that funding or classrooms for severely handicapped
pupils and funding for classrooms for county community school pupils.

   (e) (1) The Legislature may amend this section to adjust the
minimum funding amounts specified in paragraphs (1) and (2) of
subdivision (a) and the maximum funding amounts specified in
paragraphs (3) and (4) of subdivision (a), and to adjust the minimum
funding amounts specified in paragraphs (1) and (2) of subdivision
(b) and the maximum funding amount specified in paragraph (3) of
subdivision (b), by either of the following methods:
   (A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the statute
is consistent with, and furthers the purposes of, this chapter.
   (B) By a statute that becomes effective only when approved by the
voters.
   (2) Amendments pursuant to this subdivision may adjust the amounts
to be expended pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a) or paragraphs (1) to (3), inclusive, of subdivision
(b) or both, but may not increase or decrease the total amount to be
expended pursuant to either subdivision.
  SEC. 15.  Section 1003 of the Elections Code is amended to read:
   1003.  This chapter shall not apply to the following:
   (a) Any special election called by the Governor.
   (b) Elections held in chartered cities or chartered counties in
which the charter provisions are inconsistent with this chapter.
   (c) School governing board elections consolidated pursuant to
Section 5006 of the Education Code or initiated by petition pursuant
to Section 5091 of the Education Code.
   (d) Elections of any kind required or permitted to be held by a
school district located in a chartered city or county when the
election is consolidated with a regular city or county election held
in a jurisdiction that includes 95 percent or more of the school
district's population.
   (e) County, municipal, district, and school district initiative,
referendum, or recall elections.
   (f) Any election conducted solely by mailed ballot pursuant to
Division 4 (commencing with Section 4000).
   (g) Elections held pursuant to Article 1 (commencing with Section
15100) of Chapter 1, or pursuant to Article 4 (commencing with
Section 15340) of Chapter 2 of, Part 10 of the Education Code.
  SEC. 16.  Section 65995.5 of the Government Code is amended to
read:
   65995.5.  (a) The governing board of a school district may impose
the amount calculated pursuant to this section as an alternative to
the amount that may be imposed on residential construction calculated
pursuant to subdivision (b) of Section 65995.
   (b) To be eligible to impose the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section, a
governing board shall do all of the following:
   (1) Make a timely application to the State Allocation Board for
new construction funding for which it is eligible and be determined
by the board to meet the eligibility requirements for new
construction funding set forth in Article 2 (commencing with Section
17071.10) and Article 3 (commencing with Section 17071.75) of Chapter
12.5 of Part 10 of the Education Code.  A governing board that
submits an application to determine the district's eligibility for
new construction funding shall be deemed eligible if the State
Allocation Board fails to notify the district of the district's
eligibility within 120 days of receipt of the application.
   (2) Conduct and adopt a school facility needs analysis pursuant to
Section 65995.6.
   (3) Until January 1, 2000, satisfy at least one of the
requirements set forth in subparagraphs (A) to (D), inclusive, and,
on and after January 1, 2000, satisfy at least two of the
requirements set forth in subparagraphs (A) to (D), inclusive:
   (A) The district is a unified or elementary school district that
has a substantial enrollment of its elementary school pupils on a
multitrack year-round schedule.  "Substantial enrollment" for
purposes of this paragraph means at least 30 percent of district
pupils in kindergarten and grades 1 to 6, inclusive, in the high
school attendance area in which all or some of the new residential
units identified in the needs analysis are planned for construction.
A high school district shall be deemed to have met the requirements
of this paragraph if either of the following apply:
   (i) At least 30 percent of the high school district's pupils are
on a multitrack year-round schedule.
   (ii) At least 40 percent of the pupils enrolled in public schools
in kindergarten and grades 1 to 12, inclusive, within the boundaries
of the high school attendance area for which the school district is
applying for new facilities are enrolled in multitrack year-round
schools.
   (B) The district has placed on the ballot in the previous four
years a local general obligation bond to finance school facilities
and the measure received at least 50 percent plus one of the votes
cast.
   (C) The district meets one of the following:
   (i) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 15 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIIIA of the California
Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 53311) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 53311) of Division 2
of Title 5 that are approved by a vote of landowners prior to
November 4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code).  Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district, that is incurred by another public agency, shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained herein.
   (ii) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 30 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIIIA of the California
Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 53311) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 53311) of Division 2
of Title 5 that are approved by a vote of landowners after November
4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code).  Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district, that is incurred by another public agency, shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained herein.
   (D) At least 20 percent of the teaching stations within the
district are relocatable classrooms.
   (c) The maximum square foot fee, charge, dedication, or other
requirement authorized by this section that may be collected in
accordance with Chapter 6 (commencing with Section 17620) of Part
10.5 of the Education Code shall be calculated by a governing board
of a school district, as follows:
   (1) The number of unhoused pupils identified in the school
facilities needs analysis shall be multiplied by the appropriate
amounts provided in subdivision (a) of Section 17072.10.  This sum
shall be added to the site acquisition and development cost
determined pursuant to subdivision (h).
   (2) The full amount of local funds the governing board has
dedicated to facilities necessitated by new construction shall be
subtracted from the amount determined pursuant to paragraph (1).
Local funds include fees, charges, dedications, or other requirements
imposed on commercial or industrial construction.
   (3) The resulting amount determined pursuant to paragraph (2)
shall be divided by the projected total square footage of assessable
space of residential units anticipated to be constructed during the
next five-year period in the school district or the city and county
in which the school district is located.  The estimate of the
projected total square footage shall be based on information
available from the city or county within which the residential units
are anticipated to be constructed or a market report prepared by an
independent third party.
   (d) A school district that has a common territorial jurisdiction
with a district that imposes the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section or
Section 65995.7, may not impose a fee, charge, dedication, or other
requirement on residential construction that exceeds the limit set
forth in subdivision (b) of Section 65995 less the portion of that
amount it would be required to share pursuant to Section 17623 of the
Education Code, unless that district is eligible to impose the fee,
charge, dedication, or other requirement up to the amount calculated
pursuant to this section or Section 65995.7.
   (e) Nothing in this section is intended to limit or discourage the
joint use of school facilities or to limit the ability of a school
district to construct school facilities that exceed the amount of
funds authorized by Section 17620 of the Education Code and provided
by the state grant program, if the additional costs are funded solely
by local revenue sources other than fees, charges, dedications, or
other requirements imposed on new construction.
   (f) Except as provided in paragraph (5) of subdivision (a) of
Section 17620 of the Education Code, a fee, charge, dedication, or
other requirement authorized under this section and Section 65995.7
shall be expended solely on the school facilities identified in the
needs analysis as being attributable to projected enrollment growth
from the construction of new residential units.  This subdivision
does not preclude the expenditure of a fee, charge, dedication, or
other requirement, authorized pursuant to subparagraph (C) of
paragraph (1) of subdivision (a) of Section 17620, on school
facilities identified in the needs analysis as necessary due to
projected enrollment growth attributable to the new residential
units.
   (g) "Residential units" and "residences" as used in this section
and in Sections 65995.6 and 65995.7 means the development of
single-family detached housing units, single-family attached housing
units, manufactured homes and mobilehomes, as defined in subdivision
(f) of Section 17625 of the Education Code, condominiums, and
multifamily housing units, including apartments, residential hotels,
as defined in paragraph (1) of subdivision (b) of Section 50519 of
the Health and Safety Code, and stock cooperatives, as defined in
Section 1351 of the Civil Code.
   (h) Site acquisition costs shall not exceed half of the amount
determined by multiplying the land acreage determined to be necessary
under the guidelines of the State Department of Education, as
published in the "School Site Analysis and Development Handbook," as
that handbook read as of January 1, 1998, by the estimated cost
determined pursuant to Section 17072.12 of the Education Code.  Site
development costs shall not exceed the estimated amount that would be
funded by the State Allocation Board pursuant to its regulations
governing grants for site development costs.
  SEC. 17.  Section 65995.6 of the Government Code is amended to
read:
   65995.6.  (a) The school facilities needs analysis required by
paragraph (2) of subdivision (b) of Section 65995.5 shall be
conducted by the governing board of a school district to determine
the need for new school facilities for unhoused pupils that are
attributable to projected enrollment growth from the development of
new residential units over the next five years.  The school
facilities needs analysis shall project the number of unhoused
elementary, middle, and high school pupils generated by new
residential units, in each category of pupils enrolled in the
district.  This projection of unhoused pupils shall be based on the
historical student generation rates of new residential units
constructed during the previous five years that are of a similar type
of unit to those anticipated to be constructed either in the school
district or the city or county in which the school district is
located, and relevant planning agency information, such as
multiphased development projects, that may modify the historical
figures.  For purposes of this paragraph, "type" means a single
family detached, single family attached, or multifamily unit.  The
existing school building capacity shall be calculated pursuant to
Article 2 (commencing with Section 17071.10) of Chapter 12.5 of Part
10 of the Education Code.  The existing school building capacity
shall be recalculated by the school district as part of any revision
of the needs analysis pursuant to subdivision (e) of this section.
If a district meets the requirements of paragraph (3) of subdivision
(b) of Section 65995.5 by having a substantial enrollment on a
multitrack year-round schedule, the determination of whether the
district has school building capacity area shall reflect the
additional capacity created by the multitrack year-round schedule.
   (b) When determining the funds necessary to meet its facility
needs, the governing board shall do each of the following:
   (1) Identify and consider any surplus property owned by the
district that can be used as a schoolsite or that is available for
sale to finance school facilities.
   (2) Identify and consider the extent to which projected enrollment
growth may be accommodated by excess capacity in existing
facilities.
   (3) Identify and consider local sources other than fees, charges,
dedications, or other requirements imposed on residential
construction available to finance the construction or reconstruction
of school facilities needed to accommodate any growth in enrollment
attributable to the construction of new residential units.
   (c) The governing board shall adopt the school facility needs
analysis by resolution at a public hearing.  The school facilities
needs analysis may not be adopted until the school facilities needs
analysis in its final form has been made available to the public for
a period of not less than 30 days during which time the school
facilities needs analysis shall be provided to the local agency
responsible for land use planning for its review and comment.  Prior
to the adoption of the school facilities needs analysis, the public
shall have the opportunity to review and comment on the school
facilities needs analysis and the governing board shall respond to
written comments it receives regarding the school facilities needs
analysis.
   (d) Notice of the time and place of the hearing, including the
location and procedure for viewing or requesting a copy of the
proposed school facilities needs analysis and any proposed revision
of the school facilities needs analysis, shall be published in at
least one newspaper of general circulation within the jurisdiction of
the school district that is conducting the hearing no less than 30
days prior to the hearing.  If there is no paper of general
circulation, the notice shall be posted in at least three conspicuous
public places within the jurisdiction of the school district not
less than 30 days prior to the hearing.  In addition to these notice
requirements, the governing board shall mail a copy of the school
facilities needs analysis and any proposed revision to the school
facilities needs analysis not less than 30 days prior to the hearing
to any person who has made a written request if the written request
was made 45 days prior to the hearing.  The governing board may
charge a fee reasonably related to the cost of providing these
materials to those persons who request the school facilities needs
analysis or revision.
   (e) The school facilities needs analysis may be revised at any
time in the same manner, and the revision is subject to the same
conditions and requirements, applicable to the adoption of the school
facilities needs analysis.
   (f) A fee, charge, dedication, or other requirement in an amount
authorized by this section or Section 65995.7, shall be adopted by a
resolution of the governing board as part of the adoption or revision
of the school facilities needs analysis and may not be effective for
more than one year.  Notwithstanding subdivision (a) of Section
17621 of the Education Code, or any other provision of law, the fee,
charge, dedication, or other requirement authorized by the resolution
shall take effect immediately after the adoption of the resolution.

   (g) Division 13 (commencing with Section 21000) of the Public
Resources Code may not apply to the preparation, adoption, or update
of the school facilities needs analysis, or adoption of the
resolution specified in this section.
   (h) Notice and hearing requirements other than those provided in
this section may not be applicable to the adoption or revision of a
school facilities needs analysis or the resolutions adopted pursuant
to this section.
  SEC. 18.  The Legislature finds and declares that the modifications
to the Class Size Reduction Kindergarten-University Public Education
Facilities Bond Act of 1998 made by this act further the purposes
of, and are consistent with, that act.
